Rupee snaps two-day losing run, up 4 paise against US currency

In a volatile trade on Tuesday, the rupee snapped its two-day losing streak against the US Dollar by recovering 4 paise to 67.90 on fresh selling of dollars by banks and exporters despite sustained fall in equities.

The rupee had lost 30 paise to close at 67.94 per dollar in Monday’s trade on persistent demand for the American currency from banks and importers on the back of higher greenback overseas.(EPA)

In a volatile trade on Tuesday, the rupee snapped its two-day losing streak against the US Dollar by recovering 4 paise to 67.90 on fresh selling of dollars by banks and exporters despite sustained fall in equities.

The weaker dollar in the overseas market also boosted the rupee value, a forex dealer said.

The domestic unit resumed lower at 68.14 per dollar as against Monday’s closing level of 67.94 at the Interbank Foreign Exchange (Forex) market and dropped further to 68.22 on initial dollar demand from banks and importers.

However, it recovered from initial losses to 67.89 on selling of dollars by banks and exporters before concluding at 67.90, showing a gain of four paise or 0.06%.

It has dropped by 39 paise or 0.57% in two days.

The domestic currency moved in a range of 67.89 and 68.22 per dollar during the day.

The dollar index was down by 0.21% against a basket of six currencies in the late afternoon trade.

In New York, the US dollar fell to a 15-month low against the yen yesterday, as a renewed slide in oil prices and doubts about the effectiveness of the Bank of Japan’s negative interest-rate policy drove investors back into the safe-haven currency.

The dollar tumbled today to its weakest level against the yen since late 2014 in the international market, as plunging oil prices dragged global stocks lower, helping to support haven assets like the Japanese currency and US Treasuries.